For the individual wanting to
break free of the unending
sea of collectives and
institutions contending for
his soul...and more...put together
by a Visionary Philosopher, so I've
been told. Maybe you want to stay
tuned to see if that's true...
with notes on The End of the Nation State.

Sunday, December 23, 2007

When contract law goes out the window

These are some of the hazards of suspending law as applied to financial markets, which can only function on the basis of contract law. Once contract law goes out the window, so does the faith of parties with reserve capital in lending out capital at interest. If the interest rate can be changed arbitrarily or capriciously by third parties, then those with capital would be better off buying gold or impressionist paintings or Manhattan apartments or private armies for protecting their Hampton estates, than lending money at interest established by contract....And Goldman Sachs executives pass out multi-million-dollar checks to the wizards who "innovated" an ingenious way for the rest of their country to commit financial suicide.

That last would have been impossible without a complicit Big Santa, the Federal Reserve Bank.